To The Moon

$Red Cat Holdings Inc.(RCAT)$  

The recently enacted "One Big Beautiful Bill Act" (OBBBA), signed into law by President Trump on July 4, 2025, allocates significant funding directly relevant to Red Cat's core business.

Key Provisions of the OBBBA and Their Impact:

The OBBBA includes a total of over $33 billion specifically earmarked for drone systems, autonomous platforms, and artificial intelligence technologies within defense. Within this allocation, critical components for companies like Red Cat include:

* $13.5 billion dedicated to small uncrewed systems and autonomous weapons. This funding is explicitly aimed at expanding the domestic small Unmanned Aircraft System (sUAS) industrial base and scaling the development and deployment of low-cost, attritable weapon systems. Red Cat's Black Widow™ drone, which was awarded the U.S. Army's Short Range Reconnaissance (SRR) Program of Record contract, is directly aligned with these strategic objectives, positioning the company for substantial contract opportunities.

* An additional $16 billion for military innovation and artificial intelligence, which includes funding for various uncrewed aircraft systems, further supporting the development and procurement of advanced drone technologies.

Strategic Partnership with Palantir Technologies:

Further bolstering its market position, Red Cat Holdings announced a strategic partnership with Palantir Technologies Inc. (NASDAQ: PLTR) on December 16, 2024. This collaboration involves:

* Integration of Palantir's Visual Navigation (VNav) software: This technology enhances the capabilities of Red Cat's Black Widow™ drones by enabling accurate navigation using onboard satellite imagery, entirely independent of GPS or traditional radio control signals. This is a critical advantage for military operations in electronic warfare environments where GPS may be compromised.

* Deployment of Palantir's Warp Speed manufacturing operating system: This integration aims to optimize Red Cat's production processes, streamline its supply chain, and improve quality assurance, ultimately leading to cost reductions and enhanced margins.

This partnership with Palantir, a leader in AI and data analytics for defense, significantly enhances Red Cat's technological offerings and manufacturing efficiency, making its drone systems more capable and competitive for defense procurement.

Technical Analysis and Future Outlook:

From a technical perspective, Red Cat's stock (RCAT) is showing compelling indicators for potential upward movement. The share price is currently approaching its previous all-time high (ATH) of $13.52. This level was previously reached with a volume profile that is reportedly being mirrored in current trading activity around the $13 mark. This convergence of price and volume near a significant resistance level suggests strong accumulation and investor interest.

Given the substantial and confirmed funding from the OBBBA, the strategic technological advantages gained through the Palantir partnership, and the bullish technical chart patterns, Red Cat Holdings Inc. appears well-positioned for significant growth. A retest and potential breakout above its previous all-time high of $15.27 could indicate a new upward trajectory for the stock in the second half of 2025. 

For technical analysis based on volume metrics, previous ath of $15.27 volume was almost the same as of now with stock price coming to $ 12 mark. Potentially, new ath will be coming before 2026!